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bm3121uk
think you'll find that cornestone are carried to bankable feasibility matey
so PEA
Feasibility
Bankable Feasibility.........
lot of work to be done still on proving the economics...........via these studies.......
one assumes based on market activity so far that CGP wont exist by BFS completion.......
R's
BN.c
Well in order to exercise the options with strike 60, the share price must be at least 60, which is way better than 37, so even if that's the best we get to see I am still somehow happy with the investment.
Thank you KB007, the ten percent was an estimate, as a portion of DGR, was taken into account. Thank you for the correct figures. Makes a bid difficult. I do agree, production and see where we are.
BM31 - "The shareholder he is looking after is himself....plus perhaps a couple of his mates." Absolutely.
"He has gifted himself, confirmed in last 6th monthly report, another 32 million x 60 pence options and an unknown amount of the 40 pence options. I have absolutely no doubt that he will take up the majority of the remaining 80-90 million by 60 pence options that have not been allocated." Sickening.
I understood that CGP has to cough up on completion of the DFS/BFS, not the PEA?
Quady,
Nick owns 4.87% on a personal level. Taking into account companies that he has a controlling interest in then his percentage increases to 22.4% (DGR and Tenstar). Coupled with further alliances within the SOLG directors and staff that would increase a further 3.76%.
Significant enough to pursue his own agenda I would say.
Totally agree Jerry. If he takes this to production he's only fooling himself. Well done for getting where he has to this. Next steps surely must be a sale of Cascabel. Near term certainty is that CGP get taken out first by end of year. Then only that has been concluded will SOLG really take off.
Don't disagree with addicknt and Jerry, as your outcome could indeed be what happens. In which case we all get an early payday. Just feel he is going to do what he says. If the PEA comes out and we have a funding package, everyone including myself, will be reassessing this share. Not in a bad way.
I think the one thing we can say without any equivocation is that neither BHP or Newcrest have any interest in being minority shareholders for the long term. This will form the catalyst for some type of corporate action; and I believe it will happen this year.
As for us taking it to production; for the reasons given by Jerry, I just can't see it.
Maher owns some 90 million shares, or approx 5%, directly. Another 20% of DGR, the parent company which owns approx 12% of solgold, therefore another 2.4%. He has gifted himself, confirmed in last 6th monthly report, another 32 million x 60 pence options and an unknown amount of the 40 pence options. I have absolutely no doubt that he will take up the majority of the remaining 80-90 million by 60 pence options that have not been allocated......because he has a history of doing so and simply put. 'he can'! So your 10% of SOLG could very well be accurate, if not understated. He is in no hurry to sell or develop SOLG. The shareholder he is looking after is himself....plus perhaps a couple of his mates.
It was my understanding that when the PEA was completed that CGP had to pay SOLG for it's share (15%) of the costs incurred to date and that if they could not pay up, then it had to sell it's share, at first right of refusal, at an agreed price to SOLG, as per agreement. Why has the PEA been therefore delayed and why this take over attempted? Don't pay SOLG and first right of refusal basically guaranteed SOLG rights to their share of Casable project...100% ownership to SOLG! If anything, it would have probably force CGP to accept takeover offer!!!!
All a delaying ploy by NM as he acquires more of SOLG, gets paid his huge wages (over Aus $1,150,000 per year....from SOLG and DGR & its daughter companies). Look at what is happening at all the other companies Maher is CEO/Chairman/Director of and you will see that they are all in the same boat. Share prices have collapsed. Lots of talk and potential but not producing a darn thing other than Maher filling his pockets! Information blackouts are the norm, a conflict of interest and misuse of insider information, while the other shareholders are not being fairly treated.
Could this be one reason why the CEO of CGP has openly condemned Maher's management style. Too much power has been given to this individual and in my view he has abused it.
Jerry, agreed.
Morning solgers,
I agree with your option. I believe NM is a seasoned CEO, i think he wants to sort out 100 % ownership of Solgold first. After that he would go and say I want offers coming in for Cascable project. He wants to cash it for more than 1 pound. Move on and work on nexxt 11 targets ....
All in all he wants to make sure the shareholders gets maximum value.
I want to cash in as soon as but north of 1 Pound....
RIO must be closely looking ...
Just to chuck my tuppence in. I cant see how NM can take this to production. The company doesnt have the skills or knowledge necessary to be a mining company and would have to ramp up hiring and expenditure massively. This would be a one mine company so would have huge specific risk for the banks, so would have to be mainly equity financed. So enormous equity issuance and dilution. Lets face it they cant even get a PEA out on time.
I dont blame NM for stating they will take to production and he may try and do some small production in his go for gold strategy. The longer he can string this out the greater chance of a higher value, but the end game will be a sale of Cascabel (my preference) or Solgold to a consortium of NC and BHP and maybe the government. I would guess that this may happen in 6-12 months time, especially if they can get some drill permits for other prospects. Obviously IMHO!!
I think CGP is a side show. Any buyer of 85% of Cascabel can do pretty much whatever they like with the asset. They can also make CGP an offer which wont be great, as where else will the CGP s/holders go?
Good morning Italian, a possible scenario, not one I believe will happen. I believe NM when he says he's going to production. But to answer your question. In Fortune oils case, the following happened. They had massive assets including a large share of China Gas, however the price was driven down, as two major shareholders held over 50% of the shares. So they did nothing apart from give dividends and then brought back shares, hence slowly increasing their percentage stake. Eventually after many years, a company that was worth about 2 billion had a market cap of 300 million and it made a compulsory purchase as it had acquired 90 percent of the shares. Share price was driven down, as there was no market for the shares. I am happy that we have many shareholders as our base, but should BHP get to a large stake, they can act in concert with another party say Newcrest, and the price will stagnate. Hence we do not want cornerstone to sell there shares to either party. NM is quite right to try to get the Cornerstone issue settled.
Quady, I am intrigued, how would things work in this scenario, in terms of PIs not getting the full value?
Good morning cookie, yes entirely possible, hence my scenario of a concert party. Been in shares that have gone this way over the years, and never known private investors to get true value. Always looking for the share register to consolidate ( this I see as a warning ), so this is possible. While we would make a profit, it would be a fraction of fair value.
Good morning addicknt, thank you, I had taken the 30% rule into consideration, that's why I refer to the share register having to change. Also aware of the 90% rule for delisting. To my mind NM owns just over ten percent, so that he can stop any delisting of Solgold. Just another reason this will go to production. Even with an offer should BHP obtain 30%. I cannot see Newcrest selling, also if funding in place, then theoretically dilution is over. Hence my reasoning for being unable to see how anyone could table a bid at the moment. It would be just too expensive.
We will know this year i think imho
Bhp/newcrest joint takeover possibly after solg take cgp shares
Quady, it doesn't work that way.
It is not possible to buy a controlling stake, as you describe it. Stock Exchange rules dictate that if someone reaches a point of owning 30% of the equity, they have to make an offer to all shareholders on exactly the same terms.
The point about Cascabel is more interesting. What if NM has reached some form of tacit agreement with a company who wants to buy Cascabel, but doesn't want to bid for CGP? The agreement is that we buy them out for paper, thus owning 100% and then the bidder makes an offer for either Cascabel on its own, or, the entire company.
With not which.
You could be right Earthling, but my point is how would a major table a bid, I cannot see how it could be done which the share register as it is. No major will bid unless some consolidation of the share book takes place. It would cost them too much.
but thats just it re us becoming potentially a major player ourselves in the future, why would the big miners let this happen?
Cat see it myself.
I would imagine if an offer came in, it would be almost impossible at this stage. First scenario, company puts in offer for a controlling stake. Because of the distribution of the shares, they would require over 50%. That's a lot of interests to satisfy. I don't believe we will get an offer this year. But let's look at scenario two. The person who makes an offer is for Cascabel or Alpala. This is even more difficult, as it is not 100% ours. Scenario three. The person who makes an offer wants to delist Solgold. This is going to require a concert party, and this is the point where I would exit this share if that happened, as you probably wouldn't make any more than the share price at that point, for all the obvious reasons. Scenario four, this I believe is the most likely. We continue on the road to production, and the interested parties, pick up blocks of shares, or buy in on additional share issues, and slowly increase there share as a percentage, and reduce the other holders. BHP is favorite to do this. Hence cornerstone shares are of immense interest to me. However if NM puts together a funding package, and we have no requirement for further issues. Then to my mind. It gets really exciting, as we could be in at the bottom of a new major, as Solgold will continue, and will not be delisted. Sure, the share register would change, but we would own shares in a rapidly growing company, that would pay dividends. Food for thought.
What is the procedure if an offer comes in ?
its not just down to NM though re decision to sell if offers come in, surely she holders vote on it?